Deadweight Loss from a Merger. Consider a market that is initially served by two firms, each of which charges a price of $50 and sells 50 units of the good. The long-run average cost of production is...

Deadweight Loss from a Merger. Consider a market that is initially served by two firms, each of which charges a price of $50 and sells 50 units of the good. The long-run average cost of production is constant at $40 per unit. Suppose a merger increases the price to $60 and reduces the total quantity sold from 100 to 50. Compute the consumer loss associated with the merger. How does it compare to the increase in profit? What is the net loss from the merger?